October, 26 2005
POSCO to set up steel processing unit in India
POSCO has announced plans for setting up a steel processing JV in India with LG Corp, to expand its presence in here POSCO would own 65% stake of $14.5 million JV, with the remainder held by South Korea's LG Corp. The investment is expected to be made on Dec. 30 this year.
The new firm, tentatively named POSCO India Processing Center, would be located in the western part of India to process electrical steel coil and sell the products to booming Indian market
The South Korean steel maker has been looking for opportunities to bolster its overseas business, particularly in China and India, as its domestic market becomes saturated.
Ispat Industries suffers Rs 233-cr Q2 loss
Ispat Industries has slipped into the red with a net loss of Rs 233 crore for the second quarter ended September 30 2005 as against a net profit of Rs 77.5 crore in the corresponding quarter of the previous fiscal The company has reported an operating loss of Rs 71 crore against an operating profit of Rs 412.5 crore last year.
Income from operations during the quarter ended September 2005 dropped 16% to Rs 1,337.6 crore, compared to income of Rs 1,590 crore during the previous quarter.
The company said reduction in prices of finished steel products during the quarter was the reason for the huge loss, whereas prices of basic inputs had only reduced marginally. The company has pointed to several reasons, including man made and natural disasters for its poor performance. Ispat Industries steel complex at Dolvi was affected by the rains and the fire at Bombay High severely impaired supply of natural gas, which resulted in lower productivity.
POSCO India short lists seven Indian mining firms
POSCO India announced that it has short listed seven Indian mining companies to develop the captive iron ore mines to be allocated by Orissa government and would pump in $ 500 million for the venture. "We have initiated consultations with a few public sector and some private companies for development of mines and company management has short-listed around seven companies for this purpose," POSCOs Chief Representative Mr SM Doh told press
Mr Doh said POSCO will look into proposals of National Mineral Development Corporation, MMTC, Orissa Mining Corporation, Salgaonkar, Sesa Goa Limited and Kudremukh Iron Ore Company Limited.
Mr Doh categorically denied entering into any kind of joint venture with these companies. "The relation will be of only supplier-customer," he said.
Poscos move comes close on the heels of Orissa government asking it to induct Indian companies for mining ore as it was earlier considering sourcing iron ore from the captive mines that were to be developed by mining giant BHP Billiton. However, the tie up between two companies broke up recently.
Small steel companies to buy land in Jharkhand on their own
It is reported that the Jharkhand government is considering a new policy under which entrepreneurs wishing to set up units over a few hundred acres will have to make their own arrangements to get the site of their choice.
The government had earlier decided to make available the land required by entrepreneurs signing MoUs for setting up units in Jharkhand. But the plan has run into rough weather with questions being raised about the rehabilitation policy.
The steel companies have signed MoUs and have applied for allotment of land to the deputy commissioners concerned, but the files are still doing the rounds of the secretariat. Sources said the government has not acquired any land so far. The government believes the policy would help hasten the process of industrialization.
Entrepreneurs can now get in touch directly with individual land-holders in places where they intend to set up their units, settle the price and get the land transferred in their names, said an official.
However, it would be the states responsibility to provide land to all big industrial units whose requirement runs into thousands of acres.
Rautaruukki posts Q3 operating profit down 11%
Rautaruukki announced a third-quarter operating profit of Euros 114 million, down by 11% from 128 million in the same period last year. Net sales reduced YOY to 812 million from 854 million.
"Profitability is estimated to hold up well during the latter part of the year and fourth-quarter operating profit is expected to come in on a par with the third quarter or to exceed it," he added.
SAs Highveld says Anglo may sell majority stake
It is reported that SAs Highveld Steel & Vanadium said that its majority owner, mining giant Anglo American Plc, was considering selling its stake in the steel maker.
"As a result of a strategic review, Anglo American has decided to embark on a process which, if concluded, may result in a sale by Anglo American of its stake in Highveld," Highveld said in a statement
Global steel production forecast to grow by 6.2% - MEPS
World crude steel output is forecast to be just below 1.11 billion tonnes in 2005, a 6.2% increase on last year, according to industry consultancy MEPS International. Blast furnace iron production is forecast to expand by almost 8% and direct reduced iron supply by 2.7%, said MEPS in its world steel outlook.
'The steel manufacturers of most industrialised countries and the emerging nations have acted very responsibly in reducing output to balance market demand, during the second and third quarters of the year. This is expected to extend into the final trimester,' the report said.
The report added that China still leads the way with an anticipated increase in production of 77 million tonnes, while producers in the EU and US are expected to reduce supply by above 16 mln tonnes in 2005. 'Chinese steel consumption has been growing rapidly for most of this year. However, steel output has been moving up at a faster rate transforming the country from a net importing nation into a net exporter of steel,' the report continued.
India will also increase output this year by around 16.5% not all of which will be consumed in their home markets.
Total Asian steel production is expected to reach almost 577 million tonnes in 2005, an increase of nearly 81.5 million tonnes on the 2004 figure. This equates to excess of 50 pct of global output for the first time.
Crude steel production in the fifteen EU member states is forecast at 162 million tonnes in 2005. This represents a decrease of almost 6.3 million tonnes on 2004. Steel making in balance European nations is expected to reach almost 32 million tonnes in 2005.
In the former USSR, MEPS predicts a decline in output of 1.4 million tonnes more than 1% in 2005.
North American demand has also been slipping and MEPS is forecasting a 6% fall in production 2005.
US Steel Q3 profit falls by 70%
Pittsburgh based United States Steel Corp. announced that their Q3 profits fell by 70% as two major blast furnaces were rebuilt and costs increased. Company said it earned $107 million for the quarter ended Sept. 30, down from $354 million during the same period a year ago. Revenue fell 14% to $3.2 billion. Income from flat rolled steel operations fell to $41 million from $362 million a year ago, and European income from operations dropped to $32 million from $146 million.
US Steel said its largest blast furnaces in the United States and in Europe were being rebuilt, and that operating income was affected by high fuel costs.
"Our flat-rolled and European segments remained profitable despite lower spot market prices and reduced operating rates," CEO Mr John P. Surma said in a statement. "After standing idle for 18 years, our No. 1 BF in Serbia took time to ramp up to full production following a complete rebuild in June."
Results were bolstered by the company's tubular steel operation, which gained from strong demand and market prices during the period, Surma said.
Arcelor puts shareholder value before size in Ukrainian auction
Arcelor participated in the auction for the sale of the 93.02% stake held by the Ukrainian State Property Fund (SPF) in Ukrainian steelmaker Kryvorizhstal KMK. Arcelor viewed KMK as a competitive cost base with access to new high growth markets which would have perfectly fitted into the Group's development strategy.
Arcelor formed an alliance with Ukraine No3 steel producer Industrial Union of Donbass IUD to jointly bid for KMK. However, the alliance considered that the final auction value for the stake in KMK exceeded the price that would have created an appropriate level of value for Arcelor's and IUD's shareholders.
Arcelor CEO Mr Guy Dollsaid: "Arcelor will continue to seek to grow through strategically compelling acquisitions; however, management will not compromise shareholder value in the pursuit of this goal. Arcelor has other opportunities to grow outside Western Europe. We remain confident that our disciplined approach is in the best interest of Arcelor's stakeholders, and we look forward to future opportunities to realize our growth strategy."
Seminar opens on iron ore price in Shandong
An international steel seminar was kicked off Tuesday in eastern China's Shandong Province, with the bargaining of iron ore price in the world market for 2006 to be a main topic.
Senior officials with the world's iron ore giants, including the CVRD from Brazil, Australian BHP and RioTinto that jointly provide 70% of the raw material in the world market, participated in the seminar held in the port city of Qingdao. Delegates from Chinese, Japanese, European and US steel and iron giants were also present at the seminar.
The seminar marks the start of the bargaining of the world iron ore price for the next year, said Mr Luo Bingsheng, deputy president with China Iron and Steel Association.
Some experts said the bargaining is set to be a difficult process since some world giants insist on a continuous price increase but others demand a reasonable price drop from the current 71.5 percent hiking
Many other attendees agreed that the iron ore prices could see a small increase during the negotiations that can take months and include many iron suppliers from several countries.
Mr Murao Takahik of Metals Mineral Resources and Coal Department within Itochu China Holding Co., Ltd., one of the Japanese largest raw material traders, said the price increase should be in the range of 5%. .Although I am optimistically expecting that the price will not appreciate next year, Mr Takahiko added.
Many steel makers still blame Baosteel for last year's 71.5% price increase for long-term contracts. However, the skyrocketing price of the iron ore preceding last year's talks put Baosteel in a tough position.
CVRD says iron ore market to remain very tight
Cia. Vale do Rio Doce CVRD, the world's largest iron ore producer, said the iron ore market will remainvery tight'' with no idle capacity expected for at least the next two years.
Chinese imports of iron ore will underpin rising global demand for seaborne iron ore, which is expected to increase 13% a year to 430 million metric tons by 2010, Mr Nelson Silva, commercial director for iron ore at CVRD, said. Supply and demand will continue to be very, very tight,'' in the seaborne iron ore market, Silva said at the China International Steel and Raw Materials 2005 Conference in the eastern Chinese city of Qingdao. We don't see any idle capacity existing in the next two or three years, or even longer.''
Venezuelan may nationalize Sidor
Venezuelan president Mr Hugo Chavez is reported to have said that the government could consider buying out the country's largest steel mill unless it begins to sell to the local market first ahead of the international market. "The local market first, that is the deal with Sidor. and if not, they can give the shares back and I'll buy Sidor," Chavez said adding that he hoped to reach an agreement with the steel producer instead of buying it.
Mr Chavez's comments come as the government is seeking changes in the oil and mining industry. The mining ministry is reviewing allegedly abandoned concession that could be taken over by a state mining company. Chavez said the state sold Sidor iron ore at prices below those in the international market. It exports about half its output.
Sidor said it was reviewing the president's remarks and had no immediate comment.
Sidor was privatized in 1997, two years before Chavez took office. Sidor expects to produce 4 million tons in 2005, the majority of Venezuelan steel output. The company exports to dozens of countries, including the US, Mexico, China and Colombia. Sidor is jointly owned by Mexico's Hylsamex SA, Argentina's Siderar SA, Venezuela's Sivensa and Brazil's Usiminas.
Chinese Coal output to exceed 2 billion tons in 2005
China's coal output this year is to exceed 2 billion tonnes, Mr Pu Hongjiu VP of the China Coal Industry Association CCIA was quoted by local press as saying at the second meeting of the Sino Australian Coal Summit. Compared with coal production of almost 1 billion tonnes in 2000,the coal output in the country has doubled in the five years, with the annual growth rate averaging 16 percent, Mr Pu said.
In 2004, China's coal output was 1.956 billion tons.
Corrigendum - Arcelor to builds flat steel line in Huta Warsawa
Arcelor is planning to build a long product line and not a flat product line as published in STT dated October 25th
The error is regretted
Siemens to equip new slab caster of Wuyang
The Siemens Industrial Solutions and Services Group (I&S) have received an order from Wuyang Iron and Steel Co. in China to equip a new one strand continuous slab-casting plant with electrical systems. The project includes delivery, installation and commissioning of all the drive and automation equipment, which will be based on the Siroll CA concept. The order is worth EUR 3 million and commissioning is scheduled for mid-2006.
Siemens is supplying the electrical and technological components for the new plant. This includes controlled drives, the basic and process automation (with HMI) and also technological controllers. The equipment is part of the Siroll CA concept for continuous casting plants. Simatic S7 PLCs will be used for the automation.
The order also includes process infrastructure such as process-data and field-bus networks. In addition, Siemens is responsible for project management, for engineering and for the manufacture of all cabinets, as well as for supervision, installation and commissioning. Siemens China will have the lead of the project, whereas technological process functions will be implemented in collaboration with the Siemens I&S specialists from Erlangen. The mechanical parts of the plant will be supplied by Chinese engineering companies.
Wuyang Iron and Steel Co., which belongs to the Hanstell Group Co., operate a plant in Wugang city, Pingdingshang in Henan Province for the production of heavy plate. Its annual capacity up to now has been 1.2 million metric tons. Due to growing demand in China, Wuyang is now building a new continuous casting plant where slabs of widths between 1.3 and 2.5 meters can be produced. The capacity of the new plant will amount to around 1.1 million metric tons per year, most of this being micro-alloyed steels and steels with low or medium carbon content.
Mobarakeh to Increase production capacity up to 7 million tonnes
A new project called "Shahid Kharazi" has planned to be enforced by Mobarakeh Steel Company MSC during next four years which will cost $1 billion to increase its production capacity to 7 million tonnes by the end of next four years.
A tender for the 2.8 million tonnes of hot strip mill, using new continuous slab processing technology and two new Electric Arc furnaces, is expected to be launched in the fourth quarter of the year and another tender for the expansion of existing facilities will be launched afterwards.
Natural gas costs hurt AK earnings
Higher costs, including dramatic hikes in natural gas prices following the Gulf coast hurricanes, pushed AK Steel into a loss for the third quarter. For the three months ended Sept. 30, the Middletown steel maker today reported a loss of $29 million compared with a profit of $83 million. Revenues rose slightly to $1.39 billion on record shipments of 1,687 tons compared with sales of $1.34 billion on shipment of 1,541 tons a year ago.
The latest quarter included $29.5 million costs for scheduled maintenance at its Middletown and Ashland, Ky., steel mills. The flat-rolled carbon, electric and stainless steel maker said natural gas costs were $14 million in the third quarter, 20 percent higher than the second quarter.
In addition, AK Steel said it incurred $7 million in one-time costs connected with last months more flexible labor agreement with the United Steelworkers at the Ashland plant. The agreement, which covers about 750 Ashland workers is the first completed with the union by a steel maker not in bankruptcy reorganization, the company said.
Nr James L Wainscott, president and CEO who will become chairman of the board in January, said rising natural gas and other raw materials expenses more than offset the companys efforts to control costs. This was a challenging quarter, he told The toughest in the last two years.
Mittal Steel pledges compliance with investment obligations
CEO of Mittal Steel Mr LN Mittal the new owner of Ukraine's Krivorozhstal steel mill, has pledged the company's fulfillment of Krivorozhstal's investment obligations, including those in the social sector. "We are serious players and we will comply with our investment obligations," Mr LN Mittal said while meeting with Ukraine's PM Mr Yuriy Yekhanurov
He pledged the company would create new jobs, provide social security to its staff and build hospitals and houses.
According to Mr Mittal, the company will first optimize Krivorozhstal's assets and analyze each of its segments.
Outokumpus Q3 negative turned due to weak market conditions
Outokumpus sales for the seasonally weak July-September period amounted to Euro 1 191 million. Continued de stocking, the roll out of new capacity and weak growth in demand as well as high raw material prices resulted in decreased base prices for stainless steel. As announced earlier, the third quarter result turned negative and the Groups operating loss was Euro 21 million. Net loss for the period from continuing operations totaled Euro 31 million
The stainless steel markets remained weak in the third quarter. The holiday period in Europe, Outokumpus main market, resulted in low order intake and a short order backlog. High alloy surcharges also continued to curtail growth in demand, which slowed especially in Europe and Asia.
Outokumpu cut back production by some 150 000 tonnes during the third quarter including the effect of maintenance stoppages. General Stainless
made an operating loss of EUR 49 million while Specialty Stainless posted an operating profit of EUR 8 million. Technologys operating profit totaled EUR 6 million.
Outokumpus deliveries of finished products for the full year 2005 are estimated to be slightly lower than in the previous year, despite the fact that the order intake has picked up towards the end of the third quarter.
There are some positive signals in the stainless steel market. The base price erosion in Europe seems to have stopped, partly attributable to the significantly reduced inventories as well as declining alloy surcharges. This suggests that de-stocking could come to an end during the first half of 2006. However, the demand outlook for the fourth quarter 2005 remains uncertain.
CEO Mr Juha Rantanen comments "Long-term stainless demand is healthy but new capacity in China puts pressure on markets also in Europe. Thus we have initiated a bold change program to enable us to reach our financial goals even in a challenging market. The process we have initiated in Sheffield leading to a ceasing of the cold rolling mill is aiming at improving our manufacturing structure by enabling full capacity utilization in Tornio. This in combination with the already initiated performance improvement actions will significantly improve our profitability and cash flow in the years to come."
Gerdau Ameristeel modernization of Whitby caster
Concast AG, Zurich, Switzerland, and its subsidiary Concast America Inc., Pittsburgh; USA; have been awarded a major contract from Gerdau Ameristeel to modernize its five-strand 26 ft. radius billet caster in Whitby, Ontario, Canada.
The project calls for Concast to replace the technological core of the caster as well as all downstream equipment. The full upgrade comprises new dual cantilever tundish cars, cartridge meter mould assemblies with electromagnetic mould stirrers, electromechanical short lever oscillation, intensive multi-zone CONMAX secondary spray cooling, roller apron/strand guides, CCS withdrawal straighteners, torch cutting machines, all discharge equipment including a turnover cooling bed as well as full automation via Concast Systems group.
Concast AG, Zurich, Switzerland, through its subsidiary Concast America, Inc. serves long-product steelmakers throughout North America, providing comprehensive engineering services, supply of full melt shop and billet caster equipment, services, automation and process control. Concast AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group.
SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology.
Anyang Steel commissions new capacity to reach 7 million tonnes
The Anyang Iron and Steel Group launched the production of a 120 ton converter and a continuous rolling mill with an annual capacity of 1.1 mln tons of steel and 1.1 mln tons of steel products last week. Anyang Steel started building the project equipped with a 2,220 cubic meter blast furnace, a 120-ton converter, and a continuous rolling mill, and three power plants in 2003. The new equipment increases the company's production capacity to 7 mln tons of steel and 5.6 mln tons of steel products per year...
The blast furnace has commenced production earlier this year. It sourced the converter and the hot rolling mill from Austria's Danieli, a leading metallurgical equipment group worldwide.
It is further reported that Anyang Steel plans to invest a total of $2.22 billion in five years in equipment and technology optimization in order to give Anyang Steel an annual capacity of 10 million tons of steel. It plans to build a 150 ton converter, a hot rolling mill, and a cold rolling mill
It produced 5.24 million tonnes of steel, 4.55 million tonnes of iron, and 3.81 million tonnes of steel products in 2004. The sales income was RMB 16.3 billion ($2.01 billion) and profit was RMB 638 mln ($78.67 million).
Coal Trading Handbook 2005-2006
Hill & Associates Inc and Doyle Trading Consultants LLC have published the Coal Trading Handbook 2005-2006 as an Insider's Guide to Coal Trading and the Coal Industry. The Coal Trading Handbook combines an exhaustive, no-nonsense analysis of the US and global coal markets with a comprehensive coverage of coal trading techniques and risk management strategies.
"We created this product for companies with 'coal capital' at risk: hedge funds, electric utilities, coal companies, merchant generators banks, energy traders, bankers, energy analysts, railroads, barge lines and PUC commissioners," co-author Mr Stephen Doyle, founder of Doyle Trading Consultants, sadism Stephen Doyle has been in the coal business since 1983 as a scheduler, exporter, importer, salesman, buyer, negotiator, OTC trader and futures trader.
Commercial Metals 4Q profit surges
Commercial Metals Co. more than doubled its fourth-quarter earnings, helped by favorable market conditions for most of its businesses, the company said Tuesday.
The Irving-based maker and recycler of metal and steel products reported net income of $286 million compared to fourth-quarter 2004 net income of $132 million. Revenue for the current year's quarter rose to $6.6 billion, from $4.8 billion a year ago.
Commercial Metals said its domestic mills segment set an all-time earnings record for the quarter. The segment's operating profit was $73.1 million, more than double the operating profit in last year's fourth quarter.
Zamil Steel to supply structural steel to Shoaiba Power Plant
Zamil Steel has again been awarded the contract to supply structural steel products for Phase 2, Stage 2 of Shoaiba Power Plant Project in the Kingdom of Saudi Arabia. This contract worth $9 million raises the total cumulative value to $43 million for structural steel works executed by Zamil Steel on previous stages and phases of this project. Delivery has commenced in September and is targeted for completion in April 2006.
A consortium of Alstom Power of France and Saudi Archirodon is the main contractor for the Shoaiba Power Plant Project. Saudi Archirodon has partnered with Zamil Steel on all previous stages and phases of this crucial project.
IPSCO reports continued strong Q3 results
IPSCO Inc Toronto announced strong Q3 2005 results with a 10% increase in sales to $705 million over the same quarter last year and 6% increase in income before tax. But as Q3 2005 tax rate was 38% compared to an unusually low rate of 28% in the prior year, the net income of $134 million in Q3 2005 was less than the Q3 2004 net income of $144 million.
IPSCO's favorable sales performance versus the prior year and prior quarter was driven by record energy tubular sales volumes partially offset by declines in steel mill product sales related to a planned maintenance outage at the Montpelier Steelworks and unplanned outages at the Mobile Steelworks due to Hurricanes Dennis and Katrina.
Total Q3 shipments were 848,000 tonnes, virtually flat compared to last year but 44,000 tons greater than the prior quarter due to record energy tubular shipments of 216,000 tons and large diameter pipe shipments of 45,000 tons. Energy tubular shipments increased 46% and 39% respectively over last year and prior quarter.
IPSCO's average third quarter product price was $832 per ton, inclusive of surcharge, comparable to $760 per ton a year ago and $830 in the second quarter. The impact of higher energy and large diameter pipe shipments offset a decline in steel mill product pricing.
"IPSCO withstood the impact of planned and unplanned outages at our U.S. steelworks as well as a temporary decline in demand from service centers early in the quarter. Our third quarter operating income of $235 per ton remains among the highest in the industry," said Mr David Sutherland, President and CEO. "We are well positioned to take advantage of strong end user demand for our steel mill products and anticipated record activity in the energy tubular sector in the fourth quarter. As mentioned last quarter, large diameter pipe shipments in the fourth quarter are expected to increase significantly. We anticipate our shipment volumes for the fourth quarter will increase in all of these product lines."
Outokumpu to cease its UK coil products operation in Sheffield
Outokumpu has completed the review of its stainless steel cold rolling operation in Sheffield and the Board of Directors has today concluded that it is the intention of Outokumpu to cease the operations of its Coil Products Sheffield (CPS) business unit in the UK. This intention is subject to consultation that will immediately commence with the Sheffield workforce and the appropriate trade unions. The Groups Sheffield-based melt shop, long products and special strip units, as well as its UK sales and distribution centre are unaffected by this decision.
As announced on September 26, 2005, as a temporary measure at that time, all new orders, excluding bright annealed grades, usually produced at CPS were to be transferred to Tornio in Finland. After now completing the more thorough review it is proposed that the loss making CPS production will cease altogether.
Mr Juha Rantanen, CEO of Outokumpu, said: "Todays announcement demonstrates our commitment to ensuring our global competitiveness. At the same time, however, we regret having to make the difficult decision involving our CPS colleagues. It is certainly not one that has been taken lightly, especially given the commitment and excellent effort of the CPS workforce over the years."
In the new operational structure Outokumpus melting capacity will be 2.5 million tonnes, hot rolling capacity to match melting capacity and cold rolling mill capacity 1.6 million tonnes annually.
USA looking at restricting scrap exports to China
It is reported in a steel portal that US copper industry along with the iron and steel industry have drafted a petition asking the US Government to temporarily restrict the exporting of metal scrap from the USA to China. The industries are worried about the large demand for metal scrap from China and think that the increasing demand will lead to the price of metal scrap in USA rising and finally leading to demand exceeding supply.
In recent years the price of scrap in the US market has been increasing and from a level of $77 per ton has risen to $156 in 2003 and is currently up to $300 levels. China is the biggest importer accounting for 30% of export quantity and is the biggest pusher of prices
Sino-Polish engineering JV planned
A subsidiary of China National Coal Group, the country's second largest coal producer, plans to set up a JV with a Polish company to tap into the coal shearer manufacturing business. China National Coal Mining Engineering Equipment Group Corp (CME) signed a letter of intent on the JV with Zabrzanskie Mechanical Works yesterday in Beijing.
The two sides will have further discussions on the investment details, CME's vice-president Dai Qiuliang told press. "The future co-operation with Zabrzanskie will help us develop a complete range of products in coal mining," he said.
According to Mr Dai, CME has developed a series of machines with its own patents, and its major products such as powered roof supports and conveyors have enjoyed a relatively high market share in China. However, it does not produce coal shearers. "We hope to introduce the advanced equipment in the sector into local production," he said.
It also signed another two co-operative deals with the English firms David Brown Engineering Ltd and Parsons Chain Co yesterday. Under the deals, CME will use David Brown's technology and brand to produce gearboxes for mining machines and co-operate with Parsons on the mining chain business.
CME has set itself a goal to be China's No 1 and one of the world leaders supplying coal mining equipment. To achieve this goal, it is actively looking for co-operation opportunities to upgrade its technology and production capacity and improve competitiveness.
Laigangs new blast furnace starts operating
Laigang has recently started operations of their new blast furnace. The furnace has an inner volume is about 1000 cubic meters. With the new BF, the company has an annual capacity of 10 million tons. This was commissioned by the construction company China 22nd Metallurgical Construction Corp
Laigang is reported to be the biggest steel section mill in China.
Inco's Q3 profit plunges to $62 million
Inco Ltd., which has made a $12.5 billion bid for rival Falconbridge Ltd., said Tuesday its Q3 earnings sank to $62 million US from $142 million US a year earlier. The world's No. 2 nickel producer, primed to take the No. 1 position after the merger with Falconbridge, cited the impact of high production costs, and said it remains optimistic although nickel prices are falling.
Inco executives call 2005 a "transition year," as the Voisey's Bay project in Labrador comes on stream and begins to put a dent in production costs. Chief operating officer Mr Peter Jones told analysts that the project will make its first shipment in the second week of November.
Voisey's Bay is forecast to produce about 110 million pounds of nickel concentrate next year, bringing Inco's 2006 nickel production to 540 million pounds, compared with to between 485 million and 490 million pounds this year.
Inco produced 111 million pounds of nickel during the third quarter, which ended Sept. 30.
Mittal Steel placed on Creditwatch negative by S&P after bid
Standard & Poor's ratings services said it has placed its 'BBB+' long-term corporate credit rating on Mittal Steel NV on CreditWatch with negative implications following the company's successful $4.8 billion bid for a 93% stake in Ukrainian steel mill Kryvorizhstal.
The agency said the Kryvorizhstal bid demonstrates a more aggressive growth strategy and financial policy than is reflected by Mittal's current rating, and that the re-rating reflects a potential increase in Mittal Steel's leverage as a result of the bid.
It added that in addition to the significant acquisition price its paid for Kryvorizhstal, Mittal Steel will have to invest substantially to modernize the Ukrainian company's aged asset base.
Fording Coal trust Q3 profit soars
Fording Canadian Coal Trust announced that its July-September revenue rose to $559.9 million from $276.4 million, as sales increased 5.5% to 3.8 million tonnes and the Canadian-dollar selling price of its metallurgical coal rose to $146.70 per tonne from $75. Operating income was $263.6 million, compared with $50.8 million a year earlier, and net income swelled to $427 million from $41 million.
However it acknowledged that sales were lower than expected amid transport bottlenecks and equipment shortages, while Chinese customers demanded shipment delays
Operating costs to mine coal swelled 20% from a year ago to $36.50 per tonne, and transportation expenses ran up 31% to $36.40 per tonne because of a new contract with CP Rail and increased Westshore Terminals rates tied to the price of coal
The trust owns 60 per cent of the Elk Valley Coal Partnership
Mr Gordon Eberth, VP of marketing for Elk Valley Coal, told "We've shipped about a million tonnes to China so far this year, versus contracts for two million tonnes." The Chinese shortfall is caused by "low prices for domestic coal in China, leading certain mills to buy domestically. In the past few weeks the certainty of these delays has become evident, leading us to revise our estimates downwards. It should be noted that China represents only about seven per cent of our 2005 contract volume."
Mr Eberth said another factor that "will impact shipments in the short term" is an overhang of coking coal held by steelmakers which overbought in early 2005 during an industrywide scramble amid fears of a coal shortage.
Irans iron, steel production up 10%
According to an International Iron and Steel Institute report, Iran has produced some 8.76 million tons of iron and steel in the past nine months of the current year, 10% more than that in the corresponding period in 2004.
Irans iron production in the said period totaled 1.76 million tons, showing 15.6% growth, while steel production in this nine month period reached nearly 7 million tons to set 9.8% increase in comparison with the same period last year.
Al-Babtain wins Saudi Aramco contract
Al-Babtain, leaders in transmission & distribution systems, announced today the signing of a contract worth $ 5.6 Million with the worlds largest oil company - Saudi Arabian Oil Company Aramco), for the supply of steel distribution poles. The project involves the design, manufacture and supply of octagonal shaped, hot dip galvanized steel poles of 15, 16 & 18 meters in height with voltage ratings of 13.8 KV for power distribution. The project is due for completion by July 2006
This project is a major breakthrough for Al- Babtain, becoming the first supplier to supply hot dip galvanized steel poles for power distribution to Saudi Aramco.
Saudi Aramco has been using wooden poles for power distribution in all its locations and it will be the first time, Saudi Aramco will be shifting to steel poles for power distribution.
'Al-Babtain is one of the leading providers of transmission & distribution products with vast experience of executing numerous projects in domestic and international locations; this is due to our excellent design capabilities and prompt deliveries.' Said, Mr Mansour Al-Babtain, Area Manager
Coal prices stoke profit at Teck in third quarter
Higher coal prices have kicked in at Teck Cominco Ltd., helping to more than triple its Q3 profit and giving another boost to a company already riding high on the commodity boom. Teck yesterday reported a profit of $405 million for the three months ended Sept. 30, compared with $120-million a year earlier. Revenue climbed to $1.15-billion from $925-million.
Higher prices for all of the commodities that Teck produces except lead, which recorded a 7% price drop during the third quarter helped drive increased profit and cash flow at the company.
Teck's average realized price for coal jumped by 115%. Coal has been a bigger part of the company's profile since a sweeping reorganization in the Canadian coal sector in 2003.
Teck has a 39% stake in the Elk Valley Coal Partnership, which operates five mines in British Columbia and one in Alberta.
Siemens to supply new main drive for CR Mill of ThyssenKrupp
The Siemens Industrial Solutions and Services Group (I&S) has received an order from ThyssenKrupp Steel AG to supply a new main drive for the BETA coupled tandem pickling line in the customer's Dortmund plant. The synchronous motor will be powered by two voltage source converters. This solution is characterized by its high availability. The order is worth around three million euros. Delivery, installation and commissioning of the drive systems are scheduled for July 2006.
For stand 1, Siemens is supplying a new cylindrical-rotor synchronous motor with a nominal output of six megawatts. The motor will be powered by two Simovert ML DC link converters. The new motor will replace three direct-current motors, which have been in use since the tandem cold mill was built in the 1970s. Compared to direct-current drives, the new drive system is more efficient, thus saving energy. At the same time, the Siemens solution requires much less maintenance and will thus increase the availability of the plant as a whole. With the new drive system, strips with a higher initial thickness can be rolled whereby the final thickness remains the same.
With an annual raw steel output of 14 million tonnes and over 30,000 employees, ThyssenKrupp Steel is one of the world's leading producers of high-quality flat steel. The coupled tandem pickling line in Dortmund, modernized in 2003, is one of the company's most productive cold rolling mills.
The Siemens Industrial Solutions and Services Group (I&S) is the integrator of systems and solutions for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation, operation and the entire life cycle. I&S uses the electrical and technical products of other Siemens Groups in order to enhance productivity and improve competitiveness of companies in the sectors of metallurgy, water treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, intelligent traffic systems and industrial services.
NS Group reports 25% increase in net due to bayonet tube market
NS Group Inc, the Newport based tubular steel maker, today reported 25% increase in third quarter profits despite shipment disruptions caused by Hurricanes Katrina and Rita. The supplier of oil and gas drilling pipe said profits for the period ending Sept. 30 increased to $30.8 million from $24.7 million a year ago.
Sales were $139.9 million on shipment of 104,100 tons, compared with sales of $122 million on shipment of 114,100 tons in the year-ago period.
Mr Rene Robichaud, president and CEO, said NS Group employees worked hard in September to fill customer orders despite logistical and operational issues caused by the hurricanes. Some shipments were pushed into this quarter as result of the storm, he said
Mittal Steel Liberia reassures Liberians on development
Mittal Steel Liberia and Liberia Business Association held a major discussion on how they can collaborate in ensuring a brighter business prospect that would benefit Liberians. Mittal Steel Liberia has committed about US$900 million investment in Liberia with the economic investment focus aimed at revamping the former Liberia America Mining Company LAMCO and the Liberia Mining Company LIMINCO located in Nimba, and Grand Bassa Counties respectively.
LIBA VP Mr John W Brandy, said any major investment in post war Liberia must ensure the broader participation of professional indigenous Liberians in its core of operations, which may include empowerment, training, scholarship, health and education among others. Another executive of LIBA, Mr Clemency Urey, urged Mittal Steel to do business with Liberia owned entrepreneurs in areas that would help empower Liberians.
Responding on behalf of Mittal Steel Liberia, the company's CEO Mr Rajesh Goel reiterated Mittal Steel's commitment to Liberia during the bidding process, which the company recently won among major competitors. He said his company's interest in Liberia's economy is simple and beneficial, building a very good infrastructure, empowerment of Liberians and producing steel and Iron at a very cheaper cost with emphasis on quality production.
Mittal Steel has committed to employing thousands of Liberians in various categories, which may range from computer operators, heavy-duty truck drives, caterpillars, folk lifts, and other major operational areas within the company's mandate. He also assured that his company would prioritize training of Liberians in various operational skills relative to its work.
To sale Kryvorihstal is a great mistake Mr Sivkovich
The deputy of Ukraine Vladimir Sivkovich commented on Kryvorizhstal auction. He reckons Kryvoriznstals re-sale to lead to loss of Ukrainian economic safety. He said that the sale of Kryvorizhstal is the same great mistake as it was the sale of oil-refinery plants.
Having lost the of oil-refinery industry Ukraine lost control under oil market. The re-sale of Kryvorizhstal, which catered to 100% needs of domestic market, makes it dependent on new owner; it will increase the prices on the construction and housing. And moreover, the government will not be able to influence it, explained Mr Sivkovich.
He is definitely sure that Kryvorizhstal had to be the national enterprise and to make a profit for it.
Asked the question on violations of the law concerning the fact of prohibition of the sale by the parliament, Mr Sivkovich said that the parliamentary decision could not prevent the re-sale but the European Court on Human Rights can. The former owners of Kryvorizhstal Rinat Akhmetov and Victor Pinchuk handed an appeal and the European Court accepted them for consideration.
Agreement signed to develop Zambia uranium, coal reserves
Nickel miner Albidon and Energy Ventures EVE said yesterday they had entered into an agreement for the exploration and development of a number of uranium and coal prospects that have been identified on Albidon's tenements in Zambia. Under the agreement, major exploration programs will start immediately with A$500 000 to be spent by EVE within two years to maintain an option to enter a joint venture on one or more project areas.
Following these programs, EVE may earn a 30% interest in each project area selected by it for farm in by expending A$1 million on the selected project area, and may then proceed to earn a 70% interest by drilling up a JORC indicated resource and completing a pre feasibility study.
The agreement will allow Albidon to remain focused on developing its nickel projects in southern Africa while adding value to its tenements through the funding and expertise provided by a specialist energy exploration company, the miner said.
Kumba to mine Botswana coal
Kumba Resources is to join Gaborone-based Company Magaleng in an initiative to mine Botswana's abundant coal resources as per reports in media
Botswana has two-thirds of Africa's coal resources, but they have never been tapped.
Mr Ernst Venter of Kumba Resources said the project would require at least R118-million, as initial capital to start the project in the Waterberg area early next year.
POSCO to be listed in Tokyo on Nov. 22
POSCO, the world's fifth largest steelmaker, said it will list securities worth four percent of its shares on the Tokyo Stock Exchange on Nov. 22 by issuing depository receipts worth 3.5 million shares to become the first Korean firm to be publicly traded in Japan.
POSCO's securities are expected to attract Japanese investors as their price is low compared to earnings and the dividend yield ratio is high compared to Japanese steelmakers.
Gerdau Aminas Ouro Branco order 230 t ladle furnace
Concast AG, Zurich, Switzerland, and its subsidiary Concast Metalurgia Ltda., S Paulo, Brazil, have been awarded a major contract from Gerdau Aminas to supply a 230 t ladle furnace and its auxiliaries deslagging stand, material handling system, electrical substation and distribution in Ouro Branco, Minas Gerais, Brazil.
The full supply comprises Concast minimized furnace draft roof, power conductive arms, carbon injection lance, multi function measuring and sampling lance, electrical substation, medium and low voltage distribution as well as full automation via Concast Systems group including Concast electrode regulation, and Level 2 system.
Russell-Stanley expects to emerge from Chapter 11 within 10 days
Russell-Stanley Holdings Inc. announced that after only approximately two months in Chapter 11, the U.S. Bankruptcy Court for the District of Delaware confirmed the prepackaged plan of reorganization of Russell-Stanley and certain of its subsidiaries.
The Plan provides, among other things, for the sale of substantially all of the assets of Russell-Stanley and certain of its subsidiaries to an affiliate of Mauser-Werke GmbH & Co. KG and One Equity Partners. The Plan is expected to become effective, and the asset sale is expected to close, within the next ten days after satisfaction or waiver of various conditions to closing.
Russell-Stanley Holdings, Inc. is North America's largest plastic drum manufacturer, second largest steel drum manufacturer, and a leading industrial container supply chain management company
